The premium buyers pay to obtain raw sugar from Thailand, the world’s second-biggest exporter, slid over the past week as global demand for sweetener declines, according to Green Pool Commodity Specialists Pty Ltd.
Raw sugar from Thailand is at a premium of $2.60 a pound above the price on ICE Futures U.S. in New York, the Brisbane-based researcher, said in a report e-mailed today. Thai sugar was for sale at a premium of $3 to $3.20 a pound a week earlier. Raw sugar futures have climbed 7.6 percent so far this month in New York.
“Physical demand seemed to dissipate on the rally,” Tom McNeill, a director at the company, said in the report, referring to rising futures. “Ramadan buying is over and Chinese buyers resold some center south Brazil cargoes.”
Raw sugar futures climbed after above-average rainfall in May and June in Brazil, the world’s largest producer, delayed the crop and shipments.
In India, the world’s second-biggest producer and largest consumer, domestic sugar prices rose 1.6 percent over the past week to about $633 a ton on concerns a lack of rainfall will hurt the crop, Green Pool said.
The monsoon, which accounts for 70 percent of India’s annual rainfall, may be 15 percent to 20 percent below average in August, Harish Rawat, junior farm minister, said in New Delhi today. The country’s states haven’t yet declared a drought because of the poor rains, he said.